*Loan,banking and credit>>>credit line

Would an equity home loan or line of credit be wise to assist in repairing credit problems?

You have to figure out if the loan would pay off all your debts and lower the monthly payments you are making each month.

In most cases the interest, fees and other associated cost to get this loan is tax deductable (Check with your tax consultant for tax information)

The problem I find with most people doing this is that 2-3 years later they are right back where they were to begin with back in debt.

They fail to rip the credit cards up, limit spending, start a savings with the extra money left over. They continue to spend because now all the credit cards have a "ZERO BALANCE" so they go on a spending spree.

Most just add to the credit cards a little at a time and before they realize it the card is back at $5000, along with the rest of the cards.

So my answer is unless you plan to change your spending habits, get rid of some of your credit cards, resist impulse buying and go on an aggressive savings then you will not benefit. Check with you banker for a savings program that will be taken directly from your check each pay period.

An emergency is not buying your child a pair of $250 sneakers. I hope I am getting the message to you about spending becaues it does not take much to be in the same situation as before and all the fees, closing cost that you paid to pay off these debts has been useless.

If you can do all the above then go for it. Normally an equity loan would satisfy these debts.

I hope this has been of some use to you, good luck.

"FIGHT ON"

No. If you are having real financial trouble go see a debt counsellor first. Dont take out more credit till you have talked to a professional.
Years as a credit controller!
I may be able to help. Shoot me an email to msmith@premierloangroup.com, and I'll connect you to some resources.

Marty
It really depends on how you use it. If taking out the equity loan means paying off all your other debts, collections, whatever else you have, and brings your payment to a point where you can afford to live without using any other credit cards or debt again, it can make sense.

Too many people though, pay off their credit cards with their home equity, then go run up their cards all over again.

So, talking to a real credit counselor (not one who simply wants to slap you into their payment plans), and working out a real budget you can stick to, is the best place to start.

If you don't make changes to your spending habits, this idea might just be your first step into true financial hell though, as you will be putting your home at risk.

Step one: Make a list of every single thing you spend money on for 30 days, including bills, eating out, coffee, vending machines, etc... Everything. You should be able to identify $200-400 in wasted money you can trim back on. If you can't discipline yourself enough to write down ALL of your expenditures for 30 days, using your home equity may not be a wise idea.
10 years in mortgage banking
As long as the money you're extracting out of your house actually goes towards paying down your debt, you should be fine. Just make sure you don't go out and run up the credit cards again, though!!!

Visit the below website for refinancing quotes so you can shop around for the best deal you qualify for. Don't worry about inquiries appearing on your credit report, this website doesn't run a credit check to give you your quotes